Investing.com - The Swiss franc was trading close to two year highs against the dollar on Wednesday and gained ground against the euro as concerns over the outlook for growth in China and escalating tensions over the crisis in Ukraine prompted risk aversion.
USD/CHF was trading at 0.8776, not far from the trough of 0.8755 struck last Friday, the weakest level since November 3, 2011.
The pair was likely to find near-term support at 0.8755 and resistance at 0.8804, Tuesday’s high.
Investors shunned riskier assets amid worries over the outlook for China’s economy after data at the weekend showed that exports dropped 18.1% in February and inflation slowed.
The unexpectedly weak data raised fresh concerns over the strength of the world’s second-largest economy.
Meanwhile, China’s first domestic bond default last Friday fanned fears over problems in the country’s financial sector.
Investors were also wary as tensions over the standoff between Russia and the West over Ukraine escalated after Russia said it would recognize the results of a referendum in Crimea.
Ukraine’s interim Prime Minister Arseniy Yatsenyuk was to travel to the U.S. to meet President Barack Obama on Wednesday, as diplomatic efforts to resolve the crisis intensified.
Elsewhere, the euro fell to more than one-week lows against the Swiss franc, with EUR/CHF slipping 0.12% to 1.2156.
The single currency fell on Tuesday after European Central Bank Vice President Vitor Constancio said markets had missed some parts of its message on forward guidance last week.
He also said the ECB still had policy options available, including lower interest rates or quantitative easing, if necessary.
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